PGIM India Gilt Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

PGIM India Gilt Fund Direct Growth Plan has a NAV of ₹33.5412 as of 04 Sep 2026 and a scheme AUM of ₹87 Cr. Its 1-year, 3-year and 5-year returns are 3.22%, 6.39% and 5.62%, and the fund sits in the Medium Risk bucket. Our view is that it fits conservative debt investors who want government-securities exposure with limited credit risk, but they should still expect returns to move around interest-rate cycles.

These numbers point to a fund that has been steadier over the medium term than in the last year, while still staying close to its long-run pace. The portfolio is dominated by sovereign paper and treasury bills, so the return profile is likely to be driven more by duration and rate moves than by credit bets.

Quick facts

Particular	Details
NAV	₹33.5412 as of 04 Sep 2026
AUM	₹87 Cr
Expense Ratio	0.55%
Launch Date	01 Jan 2013
Min SIP	₹1,000
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Puneet Pal, Akhil Dhar

The fund is managed by Puneet Pal and Akhil Dhar.

Source data date: as of 04 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.56%	-2.95%
3M	1.89%	2.27%
1Y	3.22%	-4.43%
3Y	6.39%	5.88%
5Y	5.62%	6.29%

In the near term, the fund has been choppy but not unstable. The 1-month return is slightly negative, while the 3-month figure has stayed positive, which is consistent with a gilt portfolio that can react quickly to bond-yield movements.

The clearer signal comes from the 1-year period. The fund has returned 3.22% over 1 year, which is far better than the benchmark’s -4.43% over the same span. That tells us the fund handled the most recent market phase better than the benchmark, even though gilt funds are still sensitive to shifts in interest-rate expectations.

Over 3 years, the fund’s 6.39% return edges above the benchmark’s 5.88%, which suggests the recent improvement is not only a short-term feature. The 5-year picture is different: the fund’s 5.62% trails the benchmark’s 6.29%. Our read is that the fund has delivered a reasonable medium-term outcome, but its longer horizon has not outpaced the benchmark line.

That split between the 1-year and 5-year numbers is important. It shows a fund that has recovered well recently, yet still has some ground to make up when judged over a full five-year cycle. For investors, that means the fund may be more attractive as a rate-sensitive debt allocation than as a return leader across every market phase.

Source data date: as of 04 Sep 2026

Should you BUY or HOLD PGIM India Gilt?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

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Peer comparison

Fund	1Y return	3Y return	5Y return
PGIM India Gilt Fund Direct Growth Plan	3.22%	6.39%	5.62%
Bandhan Gilt Fund Direct Growth Plan	7.97%	8%	6.37%
Franklin India Gilt Fund Direct Growth Plan	6.66%	6.62%	5.44%
UTI Gilt Fund Direct Growth Plan	6.01%	6.68%	5.73%
Bandhan 10 year Constant Maturity Gilt Fund Direct Growth Plan	5.57%	7.85%	5.88%
ICICI Pru Gilt Fund Direct Growth Plan	5.33%	7.28%	6.68%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

On the 1-year view, the fund is behind all five peers listed here, with the gap most visible against the stronger recent results from Bandhan Gilt Fund Direct Growth Plan and Franklin India Gilt Fund Direct Growth Plan. That makes the latest stretch look softer than the peer set, even though the fund still stayed positive.

The longer horizon is more balanced. At 3 years, the fund’s 6.39% is ahead of Franklin India Gilt Fund Direct Growth Plan but behind Bandhan Gilt Fund Direct Growth Plan, UTI Gilt Fund Direct Growth Plan and ICICI Pru Gilt Fund Direct Growth Plan. At 5 years, it sits below Bandhan Gilt Fund Direct Growth Plan, UTI Gilt Fund Direct Growth Plan and ICICI Pru Gilt Fund Direct Growth Plan, while remaining above Franklin India Gilt Fund Direct Growth Plan. So the short-term story is weaker than peers, but the mid- to long-term picture is mixed rather than one-sided.

Source data date: as of 04 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
6.48% Government of India	Government Securities	24.86%
6.94% Government of India	Government Securities	17.18%
Clearing Corporation of India Ltd.	Cash & Cash Equivalents and Net Assets	12.96%
7.24% Government of India	Government Securities	12.55%
6.9% Government of India	Government Securities	6.76%
6.68% Government of India	Government Securities	5.53%
6.79% Government of India	Government Securities	3.66%
Net Receivables / (Payables)	Cash & Cash Equivalents and Net Assets	2.92%
364 Days Tbill Red 24-09-2026	Treasury Bills	2.86%
91 Days Tbill Red 19-11-2026	Treasury Bills	2.83%

The top 10 holdings account for approximately 92.11% of the portfolio.

To see all holdings, visit the PGIM India Gilt Fund Direct Growth Plan page

The largest holding alone is 6.48% Government of India at 24.86%, which is a meaningful single position for a gilt fund and may influence returns when sovereign yields move. The next two holdings are also large, so the portfolio’s first few positions carry most of the visible weight.

The drop from the largest holding to the tenth is fairly gradual rather than abrupt, with the tenth holding still at 2.83%. That tells us the portfolio is not built around one oversized line item; instead, it holds a cluster of government securities and short-dated bills that may spread duration exposure across multiple issues.

At the same time, the top 10 together make up 92.11% of the portfolio, and the disclosed holding set contains 15 positions. So while the fund is diversified across instruments, the visible sleeve is still concentrated in a limited number of sovereign and cash-related exposures. That concentration is typical of a gilt strategy and could keep the portfolio’s behaviour tightly linked to interest-rate changes.

Source data date: as of 04 Sep 2026

Who should invest

This fund suits investors who can accept Medium Risk in pursuit of relatively stable debt-market exposure. The 1-year return has been weaker than the peer set, but the 3-year and 5-year numbers show a steadier medium-term pattern, with the 3-year figure slightly ahead of the benchmark and the 5-year figure still positive despite lagging the benchmark.

The better fit is a patient investor with a medium to long horizon who is comfortable with bond-price movement and wants sovereign-focused exposure rather than credit risk. The main trade-off is that the portfolio may offer cleaner credit quality, but that does not eliminate interest-rate volatility, and recent performance has not matched the stronger peer outcomes.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: No exit load.

Source data date: as of 04 Sep 2026

Frequently asked questions

What is the current NAV of PGIM India Gilt Fund Direct Growth Plan?

The current NAV is ₹33.5412 as of 04 Sep 2026.

What are the 1-year, 3-year and 5-year returns?

The 1-year return is 3.22%, the 3-year return is 6.39% and the 5-year return is 5.62%.

How has the fund done versus its benchmark?

Over 1 year, the fund has outperformed the benchmark, with 3.22% versus -4.43%. Over 3 years, it is also ahead, with 6.39% versus 5.88%. Over 5 years, it trails the benchmark, with 5.62% versus 6.29%.

How does it compare with peer gilt funds?

Its 1-year return is weaker than the five peer funds listed here, while its 3-year and 5-year returns are mixed relative to them. The medium-term record is competitive in parts, but not uniformly stronger across the peer set.

What is the minimum SIP amount?

The minimum SIP amount is ₹1,000.

Who manages the fund and what is the exit load?

The fund is managed by Puneet Pal and Akhil Dhar. The exit load is no exit load.

Bottom line

PGIM India Gilt Fund Direct Growth Plan has shown a softer recent stretch than its stronger peers, but its 3-year outcome remains steady and its 5-year record is still positive. The fund is Medium Risk and is built mainly around government securities and treasury bills, which keeps credit quality high while leaving returns sensitive to rate moves. For investors seeking sovereign-focused debt exposure with a disciplined portfolio structure, it offers a clear, rate-aware profile rather than a consistently leading return path.

Published on 5 September 2026 at 3:21 PM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.